News Archive for November 16, 2017

Democrat Jones, Moore’s Rival, Gains Traction
Democrat Doug Jones, who hopes to pull off an upset in Alabama’s Dec. 12 special Senate election, is gaining traction as Republican Roy Moore is being weighed down by sexual-misconduct allegations.

U.S., Russia Trade Blame After Syria Chemical-Arms Probe Lapses
The United Nations Security Council, in a bitter standoff between U.S. and Russia, failed to renew the mandate of an independent committee investigating chemical-weapon use in Syria.

Sen. Al Franken Faces Allegations of Sexual Misconduct
The Democrat from Minnesota faced allegations of sexual misconduct, after a woman said he kissed her against her will during a 2006 rehearsal and he posed for a photo in which he appeared to grope her while she was asleep.

House Backs GOP Tax-Overhaul Bill
The House of Representatives passed a bill that would usher in the most far-reaching overhaul of the U.S. tax system in 31 years, backing a plan that would lower the corporate tax rate to its lowest point since 1939 and cut individual taxes for most households in 2018.

Stitch Fix Prices Shares at $15 Apiece in IPO
Fashion startup Stitch Fix priced its shares below its target range in its initial public offering due to concerns about competition and long-term growth prospects, according to people familiar with the deal.

Comcast Approached 21st Century Fox About an Acquisition
New suitors are circling 21st Century Fox, affirming that the media empire built by Rupert Murdoch is now in play. Comcast has approached the media company to express interest in buying a substantial piece of it. Verizon and Sony are also kicking the tires.

Cambodia’s Supreme Court Outlaws Main Opposition Party
Cambodia’s Supreme Court ruled to dissolve the main opposition party, effectively turning the country into the world’s newest one-party state and cementing its long-serving leader Hun Sen’s grip on power.

BuzzFeed Set to Miss Revenue Target, Signaling Turbulence in Media
Digital publisher BuzzFeed is on track to miss its revenue target for this year by a significant amount, the latest sign that troubles in the online ad business are making it tough for new-media upstarts to live up to lofty expectations.

Brussels Beat
U.K. Faces Hurdles on Path to a Free-Trade Era
British leaders envision a free-trade bonanza from Brexit, but they confront some thorny challenges in just keeping the global trade benefits Britain already enjoys as a European Union member.

New York City Picks Developers for Queens Mixed-Use Complex
New York City officials have selected a proposal for a mixed-use project that will bring a large number of affordable housing units to one of the city’s last waterfront development sites.

Mueller Issued Subpoena for Trump Campaign Documents
Special counsel Robert Mueller’s team in mid-October issued a subpoena to President Donald Trump’s campaign requesting Russia-related documents from more than a dozen top officials, according to a person familiar with the matter.

Congressional Leaders Close In on Spending Deal
Top congressional leaders are getting closer to a deal on raising the federal government’s overall spending levels for the next two years, people familiar with the discussions said Thursday.

U.S. Jury in Benghazi Trial Hears Final Arguments
In closing arguments in the federal trial of Ahmed Abu Khatallah, Justice Department prosecutors described the Libyan man as the ringleader of the 2012 fatal attack that killed a U.S. ambassador and three other Americans.

Bookshelf
Review: The Politics of Apps
Has Silicon Valley programmed its products to disadvantage women, minorities and the poor? An indictment of bias in the tech industry. Meghan C. Kruger reviews ‘Technically Wrong’ by Sara Wachter-Boettcher.

Menendez Mistrial Latest in String of Setbacks for Corruption Prosecutions
Federal prosecutors held out the case against U.S. Sen. Bob Menendez as a textbook example of crooked politics. “This is what bribery looks like,” Assistant U.S. Attorney Peter Koski told jurors at the opening of the New Jersey senator’s trial in September.

Gift of $600 Million to Help Fight Cancer
A $600 million gift from a son of Brooklyn will support patient care and clinical programs for cancer research, Columbia University and NewYork-Presbyterian said Thursday.

Trump’s Pick to Oversee EPA Unit May Be in Trouble in Senate
President Trump’s pick to oversee chemical safety at the Environmental Protection Agency may be in trouble in the Senate, as two Republicans have declared their opposition and a third said she is leaning against the nominee.

Pentagon Moves to Develop Banned Intermediate Missile
The U.S. is laying the groundwork to build a type of missile banned by a Cold War-era pact unless Russia abandons its own pursuit of the weapons, U.S. officials said.

Get Real on Pre-Existing Condition Coverage
Let’s face it: Covering pre-existing conditions requires either a single-payer system or mandated participation, which the individual mandate tax was intended to encourage.

The States Drive Their Golden Geese Away
When we soak the rich, we eventually discover that we have fewer rich to soak, and fewer of their companies on which to impose a favorably reduced corporate tax.

Trump Is Expected to Name OMB Director Interim Head of Consumer Regulator
White House budget director Mick Mulvaney is expected to be tapped by the White House to serve as acting director of the Consumer Financial Protection Bureau when the agency’s current head, Richard Cordray, resigns from his post later in November.

Leak Detected in Keystone Pipeline Ahead of Nebraska Vote on Extension
TransCanada Corp.’s Keystone pipeline leaked roughly 5,000 barrels of oil in South Dakota. The leak comes only a few days before the Nebraska Public Service Commission decides whether to let the company build an extension through the state.

Bond Investors’ Suit Claims Dealers Colluded on Treasurys Prices
Some of the largest bond trading firms on Wall Street boosted profits by colluding to set prices at auctions of government debt, according to an amended complaint to a lawsuit filed by a group of investors.

Metropolitan Museum of Art Runs $10 Million Deficit
The Metropolitan Museum of Art had a $10 million operating deficit in its 2016-17 fiscal year, according to the institution’s annual report that was released Thursday.

Investors Holding Venezuela Default Protection Get $1 Billion Payday
Investors who hold insurance-like derivatives against a Venezuelan default will receive a payout of more than $1 billion following a financial industry panel ruling, the latest sign that Wall Street is bracing for a messy debt restructuring.

Emerson Electric Boosts Takeover Offer for Rockwell Automation
Emerson Electric Co. boosted its takeover offer for Rockwell Automation Inc., ratcheting up an effort to bring its reluctant rival to the negotiating table and forge a new giant in industrial automation.

Caesars Entertainment to Buy Indiana Casinos in $1.7 Billion Deal
Caesars Entertainment Corp. plans to buy two Indiana casinos in a $1.7 billion deal, just weeks after it finished up a large bankruptcy proceeding.

Mexico Secures Even Lower Prices for Clean Energy in Auction
Mexico expects investment of around $2.4 billion in the next three years in new electricity generation projects as a result of its third long-term power auction, which saw prices for clean energy fall.

Connecticut Lt. Gov. Won’t Run for Top Job
Connecticut Lt. Gov. Nancy Wyman said she won’t run for governor in 2018, ending months of speculation about her political future and removing another well-known Democratic candidate from the race.

Barnes & Noble Investor Proposes Deal to Take Bookseller Private
An activist investor in Barnes & Noble has proposed a transaction that would take the bookseller private with the help of current shareholders and a hefty dose of borrowings, an effort that could face formidable obstacles.

Military, Mediators Talk to Mugabe on Zimbabwe’s Future
President Robert Mugabe met with the country’s top general and international mediators in closed-door talks at Zimbabwe’s State House on Thursday, but there was no sign of an imminent deal to end his 37-year rule.

Mistrial Declared After Jurors Can’t Reach Verdict
A federal judge in Manhattan declared a mistrial in the corruption trial of former New York City correction officers’ union head Norman Seabrook, after jurors failed to reach a verdict. Prosecutors say they will retry the case.

Meredith Has Submitted a Bid for Time Inc. of $17 to $20 a Share
Meredith Corp. has made a takeover bid for storied magazine publisher Time Inc. in the range of $17 to $20 a share, according to people familiar with the situation.

Discord Threatens Federal Role at Indian Hospitals
The federal government’s management of three Indian hospitals that treat thousands of patients is crumbling, a failure that could jeopardize care on some of the nation’s poorest and most remote reservations.

Ken Phelan to Become Acting Director at OFR
Ken Phelan, who was appointed chief risk officer of the Treasury Department in 2014, has been tapped to serve as acting director at the Office of Financial Research, sources said.

Fed’s Williams: Time For Central Bankers to Weigh New Policy Toolkit
Federal Reserve Bank of San Francisco President John Williams called again on Thursday for policy makers to rethink how they conduct monetary policy in a changed economic and financial landscape.

Queens Democratic Councilwoman Elizabeth Crowley Concedes
A Democratic councilwoman in Queens has lost her re-election bid in a razor-thin City Council race that was ultimately decided in a count of paper ballots.

Fed’s Brainard: Consumers Need Control of Their Financial Data
Consumers need to be in control of their financial data, Federal Reserve governor Lael Brainard said, wading into a continuing debate about rules governing the use of personal data in new financial products.

De Blasio Starts Search for Alternatives to Rikers
New York City Mayor Bill de Blasio’s administration has taken the first step in shutting down the troubled jail complex on Rikers Island, seeking assessments of how it can be replaced with smaller jails around the city.

Tuxedo Junctures: Eight Great Moments
With its strong, sharply-tailored shoulders and satiny lapels, no one would mistake a tuxedo jacket for just another black blazer. A look at the gender- bending piece through its controversial history.

Senate Approves Joseph Otting for Top Banking Role
The Senate approved Joseph Otting as the comptroller of the currency, filling one of the remaining positions on the Trump administration’s financial team.

Mashable Agrees to Sell to Ziff Davis for Around $50 Million
One-time digital media darling Mashable has agreed to sell itself to trade publisher Ziff Davis for around $50 million, a fraction of the site’s valuation less than two years ago.

Photos of the Day: Nov. 16
In photos selected Thursday by Wall Street Journal editors, Japan welcomes the Beaujolais Nouveau, poinsettias are readied for Christmas in Scotland, the sun rises over the National Mall reflecting pool, and more.

Germany’s Siemens to Slash Jobs Amid Shift to Renewable Energy
Germany’s Siemens AG said it would cut 6,900 jobs as it wrestles with a sharp slowdown in demand for turbines used in fossil-fueled power plants, the latest restructuring move by a global industrial giant.

Why Northern Lights Tours are the Trip of the Moment
The aurora borealis is fickle. Here’s how and where to improve your chances of seeing the spectacle—plus best places to stay while on the lookout (igloo, anyone?)

Valparaiso Law School Suspends Admissions
Valparaiso University, a private university in Northwest Indiana, said its board of directors voted to stop enrolling new law school students, as the tough climate for legal education claims another victim.

More Than 200 Arrested in MS-13 Crackdown
Law enforcement authorities arrested more than 200 suspected members and associates of MS-13 during a recent six-week operation targeting the violent street gang across the U.S., the Department of Homeland Security announced Thursday.

Mugabe’s Ousted Vice President Stands Ready for Return to Power
Ousted from Zimbabwe’s vice presidency last week, Emmerson Mnangagwa looked set for what analysts and government officials said could be his big play for the presidency.

Original Soupman’s New Owners Hope to Stir New Life Into Company After Bankruptcy
The new management team behind the Original Soupman Inc. is in the midst of cooking up a rebirth of the company after recently emerging from bankruptcy protection.

2018 Porsche 911 GT2 RS: The Fastest Street-Car Ever?
This street-legal monster does 0-60 in 2.7 seconds and broke the track record at Germany’s famous Nurburgring. Dan Neil takes it for a dizzying spin.

Scana Proposes to Lower Rates After Ending Nuclear Plant Project
Scana said it would absorb some of the construction costs from its failed nuclear plant project and rollback rates for South Carolina utility customers, as it faces pressure from state regulators and consumer groups over its handling of the development.

Mistrial Doesn’t End Legal Woes for Sen. Bob Menendez
Shortly after a federal judge declared a mistrial in the corruption trial of U.S. Sen. Bob Menendez, Senate Majority Leader Mitch McConnell called for the Senate Ethics Committee to open an investigation.

Hedge Fund Exec Lists Hamptons Estate for $70 Million
Barry Rosenstein purchased a $137 million home in East Hampton in 2014, setting the record for the most expensive home ever sold in the United States.

Top Public and Private Colleges in the Midwest
The University of Chicago and Washington University in St. Louis are the region’s top private schools and the University of Michigan tops the list of public schools in the WSJ/THE College Rankings.

Viacom’s U.S. Revenue Lags
Viacom said ratings gains at its core TV networks helped it halt a yearslong slide in domestic ad revenue in the most recent quarter. But the company expects declines in distribution revenue to continue through the next fiscal year.

Two Sigma Planning to Raise Outside Money
Two Sigma Investments is preparing to raise outside money for its private-equity strategy, which has for years invested only partners’ money, according to people familiar with the matter.

Norway Considers Pulling Its $1 Trillion Wealth Fund Out of Oil Stocks
Norway’s sovereign wealth fund said it may stop buying oil and gas stocks, a move that would deprive the energy sector of investment from a $1 trillion asset manager.

Best Buy Pinched by Later iPhone Launch
The electronics retailer attributed its lower revenue in its mobile business to Apple’s iPhone X going on sale in November, the first month of the fourth quarter, rather than during the third quarter.

PayPal Makes Growth Play as Market Cap Tops $90 Billion
PayPal said it agreed to sell Synchrony Financial nearly $6 billion in loans it made to online shoppers, a deal that will give the payments company significant cash that it can use for acquisitions or share buybacks.

The A-hed
Forget Atkins! Forget Paleo! What You Need Is the Olive Garden Diet
Pastor from Burlington, N.C., wanting to lose weight, used a “Never Ending Pasta Pass,” and munched on linguine, breadsticks, Alfredo sauce and meatballs.

U.S. Industrial Production Increased Strongly in October
U.S. manufacturing made a strong post-hurricane recovery in October, making up almost all output lost from hurricanes Harvey and Irma and boosting overall industrial production.

Wal-Mart Posts Strongest U.S. Sales in Nearly a Decade
The world’s biggest retailer posted its strongest quarterly U.S. sales growth in nearly a decade Thursday, boosted by a big jump in e-commerce and strong store traffic at a time when many traditional retailers are struggling to keep their business growing.

Google Has Picked an Answer for You—Too Bad It’s Often Wrong
Going beyond search, the internet giant is presenting itself as an oracle by promoting a single result over all others as a definitive answer. Many of these “featured snippets” are contentious, improbable or laughably incorrect.

A Wine Connoisseur Heads Home to the Midwest
In the first of a three-part series on wine culture in the Midwest, wine columnist Lettie Teague returns to her native Indiana to see what wines her fellow Hoosiers are drinking—and making—today.

Fed’s Mester: Central Bank’s Gradual Rate Path ‘Appropriate’
Federal Reserve Bank of Cleveland President Loretta Mester said she believed inflation would continue to rise and eventually hit the Fed’s 2% target, making it appropriate for the central bank to continue gradually raising rates.

Three Adjacent Manhattan Townhouses Go On the Market
Real-estate investor Joseph Chetrit turned six brownstones into three homes and is selling them for $51 million, $44 million and $39 million apiece.

An Answer for Everything
Google is increasingly elevating a single search result for many questions and giving it the appearance of a definitive answer. Sometimes the information is controversial, misleading or just bizarre.

Hedge Fund Exec Lists Hamptons Estate for $70 Million
Barry Rosenstein purchased a $137 million home in East Hampton in 2014, setting the record for the most expensive home ever sold in the United States.

Canada Factory Sales Rise in September
Canadian manufacturing shipments unexpectedly rose in September, with strong sales of energy products overcoming a decrease in the auto sector due to a strike at a General Motors factory.

One for All: Los Angeles Estate with 20 Bathrooms Asks $45 Million
Owned for many years by the late agent-to-the-stars Ed Limato, the property is now owned by designer Jeffrey Rudes, who sold his denim company J Brand in 2014.

Rabbis’ Dinner Has Outgrown New York City Venues
It is the night of 5,000 rabbis, but now with a New Jersey twist. The Chabad-Lubavitch movement, a global group of Orthodox Jews that runs 3,500 religious centers, is holding its 34th annual gathering over the coming days at its home base in Brooklyn’s Crown Heights neighborhood. Attendance has soared over the years.

Sunnis in Lebanon Vent at Saudi Ally
Sunni Muslims in Lebanon who once looked to Saudi Arabia as a close ally and patron are now venting anger at the kingdom over the recent resignation of their political leader, Prime Minister Saad Hariri.

Car Makers Count Costs of Global Warming Emissions Standards
Car makers are spending billions to develop electric vehicles and comply with emissions rules designed to combat global warming. But the effort may not be enough to avoid hefty fines in Europe.

Streetwise
The Fed is Poisoning the Market. Here’s the Antidote.
The Fed’s communication strategy is encouraging bad risk taking and complacency. It’s time to give the market a real surprise, says columnist James Mackintosh.

U.S. Jobless Claims Rose to 249,000 Last Week
The number of Americans filing new applications for unemployment benefits rose for the second straight week, but remained near historically low levels headed into the holiday season.

Hotshot Tech Founders Face a Dilemma: Lie Low or Live Large?
As “unicorn” startups such as Snap and WeWork come under greater scrutiny, some chief executives opt for more modest homes, while others splurge

Affordable-Housing Production Under Threat in Tax Overhaul Proposals
The tax bills working their way through Congress could slash production of affordable housing across the U.S. at a time when supply is near historic lows, industry executives warn.

‘The Unification That North Korea Wants Will Never Happen,’ South Says
South Korea’s unification minister dismissed Pyongyang’s ambitions of unifying the Korean Peninsula on its terms, instead urging North Korea to sit down with Seoul for talks.

Madagascar Wrestles With Worst Outbreak of Plague in Half a Century
Madagascar is scrambling to contain its worst outbreak of plague in at least 50 years, with more than 2,000 cases reported and over 170 deaths.

Chrysler Bets Big on New Jeep Wrangler
Jeep’s Wrangler SUV is known for scaling mountains and crossing rivers. Its next challenge is to bankroll next-generation investments at Fiat Chrysler as Chief Executive Sergio Marchionne prepares to leave the company.

Treasury’s New Approach to Debt: Go Short
The Treasury department is set to increase the share of shorter-term debt issuance and reduce the share of longer debt issuance, ending a yearslong trend that favored long-term debt issuance.

Nothing Will Come Between Amazon and Its Deal for Exclusive Calvins
Calvin Klein is for the first time selling new underwear exclusively on Amazon.com, bypassing the department stores that typically have first dibs on its latest styles.

Will Enough Bidders Show Up at Treasury Auctions?
As the Treasury Department prepares to increase its short-term borrowing, some investors are concerned that the rising size of its auctions raises risks that could spark selling in the bond market.

Top Officials Skip Nafta Talks as Mexico, Canada Digest Proposals
U.S., Canada and Mexico are leaving the latest round of Nafta talks to lower- level officials, reflecting how negotiations to remake the pact are focusing on technical details after U.S. proposals were branded unacceptable by its trade partners.

Middle East Crossroads
Israel Sees Rising Threat From Iran After ISIS
While much of the world celebrates the impending defeat of Islamic State, Israeli officials look at Syria and see little reason for joy. To them, a lesser enemy is being supplanted by a far more dangerous one—Iran and its allies.

Online Publishers Adopt Standards to Help Readers Spot Trustworthy News
News publishers and technology companies have agreed to adopt a set of transparency standards in an attempt to help readers better assess the quality and reliability of the journalism they find on the web.

The U.S. vs. China: How the Power Games Are Playing Out in Asia
China’s growing ambition and President Donald Trump’s ‘America First’ policies have diminished U.S. influence in some Asian countries. This video takes a look at the impact on countries including South Korea, the Philippines and Japan.

Volkswagen Plans $12 Billion Electric-Car Blitz in China
Volkswagen said it and its Chinese joint-venture partners will jointly invest nearly $12 billion by 2025 in developing electric cars for the local market, enough to roll out a total of 40 models.

Russia Offers Venezuela Debt Relief
Russia threw a lifeline to Venezuela on Wednesday, restructuring the more than $3 billion it is owed by its economically and politically troubled South American ally.

Former Israeli Actress Alleged to Be Operative for Intelligence Firm
Stella Penn Pechanac has been accused of working as an operative of corporate-investigation firm Black Cube and gathering information on critics of Harvey Weinstein, U.S. insurer AmTrust Financial, and now, a Canadian private-equity firm.

Leonardo da Vinci Painting Sells for $450.3 Million
Christie’s sold Leonardo da Vinci’s rediscovered portrait of Jesus Christ as “Salvator Mundi,” or the savior of the world, for $450.3 million, making it the most expensive work of art ever sold.

Charles Koch Foundation Boosts Donations to Colleges and Universities
A foundation backed by the libertarian billionaire Charles Koch gave away $77 million in 2016, primarily to hundreds of colleges and universities, according to its latest tax filing.

Spoiler Alert: Jack Ma Beats Jet Li, but No Hollywood Ending for Alibaba
Alibaba’s Jack Ma is burnishing his fame by starring in a martial-arts film that topped 100 million views online in just a few days. But his internet stardom won’t be enough to rescue his struggling entertainment business, which is losing money and market share.

Amtrak Posts Lowest Operating Loss in Decades as Ridership Grows
Amtrak recorded its lowest operating loss in decades this year, as the national passenger railroad pushes to one day break even. In financial results released Thursday, Amtrak broke passenger and revenue records for the year ending Sept. 30, helping to narrow its operating loss to $194 million.